An office-to-residential conversion is on the way to North Dallas.
Bharat Bhakta is among a group of investors who bought an office building at 1600 Viceroy Drive, near Love Field Airport and overlooking the Brook Hollow Golf Club, last month.
The price was undisclosed; Dominion Bank financed the purchase, the Dallas Morning News reported.
Bhakta today filed plans with the state of Texas, which indicate his group plans to spend about $9 million on a first phase of conversion. The eight-story building was constructed in 1983, and the University of Texas at Dallas has been a tenant.
Four floors of the 438,000-square-foot will be converted in the first phase. That would work out to about $41 per square foot. The number of units wasn’t revealed in the filing.
Construction could begin in December and be completed next August, according to the filing.
Bhakta is managing partner of Summit 11 Investment Group, based in Irving, according to a LinkedIn profile. He hasn’t responded to a voicemail seeking comment.
About 2,000 apartment units are expected to come online in downtown Dallas due to office conversions in the next couple of years. While developers have been doing office-to-resi conversions in downtown since the ’90s, the trend has become a hot topic nationally since the pandemic caused office space to sit unused, while underscoring a shortage of housing.
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Dallas has quite a few players in the office-to-resi space.
Kenny Wolfe of Wolfe Investments has several conversion projects underway in Dallas and Fort Worth, some of them are in partnership with local firm Bluelofts. Wolfe now owns eight historic buildings in downtown, the Dallas Morning News reported, and it has done 11 office-to-resi conversions.
Bluelofts is also converting a 16-story office building in Cleveland, Ohio, to apartments. That project is expected to be completed next spring.